Clayton Holdings Adds MSR Transaction Services

New Capabilities Will Help Banks and Investors Assess Servicing Values and Risks

Jan 24, 2013, 09:00 ET from Clayton Holdings LLC

SHELTON, Conn., Jan. 24, 2013 /PRNewswire/ -- Clayton Holdings LLC, a leading provider of due diligence, underwriting and surveillance services to the residential and commercial mortgage and fixed-income industries, announced today that it is now offering a broad array of services designed to support the growing volume of mortgage servicing rights (MSRs) transactions. Clayton is excited to be able to assist the market in identifying and understanding the risk in MSR trades that have become more frequent as a result of new regulations and capital requirements.

Clayton's MSR Transaction Services is already working with a number of banks and investors, including private equity and hedge fund buyers, as well as special servicers to identify risks inherent in acquiring MSRs.

Specifically, the group will:

  • Confirm that originators, servicers and their third-party vendors are in compliance with stated policies, guidelines, regulations, industry standards and best practices.
  • Identify underlying collateral and borrower risk via lien searches, pay history and collection comment reviews.
  • Perform escrow and advance fee reconciliation, compensatory fee exposure assessments, and ARM audits to limit liability from previous servicer errors.
  • Ensure a seamless MSR transfer by helping to evaluate and select an appropriate subservicer while validating critical data points during the transfer.
  • Perform more extensive assessments upon request, including a full review of credit, compliance and valuations.

"Clayton has been providing consulting, loan review and surveillance services to banks and investors for more than 20 years," said Tom Donatacci, executive vice president of Clayton Holdings. "Our new MSR Transaction Service builds on this experience and our deep bench strength in loan file reviewers to deliver a full array of offerings that will help both buyers and sellers efficiently identify the value and risks in the MSR deals that are coming to market."

About Clayton Holdings LLC

Clayton Holdings, headquartered in Shelton, Connecticut, provides information and services that financial institutions, investors and government entities use to evaluate, acquire, securitize, service and monitor loans and asset-backed securities. Clayton offerings include risk-based analytics, residential and commercial loan due diligence, consulting, surveillance and staffing solutions. The company provides customized commercial special servicing solutions through its Quantum Servicing subsidiary and REO management, BPOs and a short sale program through its Green River Capital subsidiary. A global reach in the financial services industry is provided by the company's European subsidiary, Clayton EuroRisk.

Additional information is available at

SOURCE Clayton Holdings LLC